Saudi Arabia is making good on promises to curtail oil shipments to the United States with the likely intention to drain visible inventories and support prices. Imports are only reported to the U.S. Energy Information Administration when the crude has cleared U.S. customs so weekly volumes are sensitive to the precise timing of customs clearance.
Saudi crude exports to the United States will be below 800,000 bpd in August, a Saudi industry source familiar with production policy told the media. Saudi Arabia and its OPEC and non-OPEC allies are keen to demonstrate to a skeptical market that output cuts are finally drawing down bloated stocks.
However, Saudi shipments have increased to India and Japan, according to vessels and cargoes tracked by Kpler, which may be offsetting some of the reduction to the United States.